HVS EMEA Hospitality Newsletter – Week Ending 14 September 2012

The latest hospitality news from Europe, the Middle East and Africa

Hotels On The Market

The Burlington Hotel Dublin, the biggest hotel in Ireland’s capital city, is on the market for immediate sale by private treaty. The purpose-built, 501-room hotel, which opened in Dublin city centre in 1972, is being offered as a freehold, unbranded property. Also for sale this week is the University Arms in Cambridge, south England. Continuing the sale of its non-core hotels, De Vere Group has put the four-star, 119-room hotel on the market after the successful sale of its Royal Bath and Daresbury Park hotels earlier this year. The hotel is offered freehold and free of current management and De Vere branding. Additionally, the Marriott Victoria & Albert hotel in the city of Manchester, northwest England, has been put on the market for a reported £15-£20 million after its owner, Dania Properties Manchester, fell into administration. This Grade II-listed, 148-room hotel is at the centre of the city’s central business district.

Pullman Pulls Up Into London

Accor’s upscale Pullman brand had made its debut in the UK. The group has opened the Pullman London St Pancras, just minutes away from King’s Cross St Pancras railway station, the home of the city’s Eurostar line. The 312-room hotel previously operated under Accor’s Novotel brand; it has been rebranded and reopened after an extensive refurbishment. “Pullman has global brand awareness in progress, which we will build on in the UK, helping to grow Accor’s presence in the UK’s upscale market, ensuring that we have a hotel brand to suit any individual’s requirements – from budget to luxury,” said Christophe Vanswieten, chief operating officer for Pullman Europe. Pullman is the eighth brand Accor has introduced to the UK market.

Meliá’s Leading Hotel In Seville

A Meliá Hotels International property in Seville, southwest Spain, is the first hotel in the city to become a member of The Leading Hotels of the World. The 189-room Gran Meliá Colón underwent an intense auditing procedure to ensure it complied with strict quality criteria in order to join the group, the largest luxury hospitality organisation in the world. “Being a member of The Leading Hotels of the World means having a passion for service and at the same time being proud of our hotel’s unique character,” said the hotel’s general manager, José Antonio Rubio.

Kempinski Launched In Lithuania

Kempinksi Hotels recently opened its first property in Lithuania. The Kempinski Hotel Cathedral Square opened its doors to guests at the heart of Vilnius’ Old Town, a UNESCO World Heritage site. The hotel’s building previously housed a luxury hotel 100 years ago and the listed property has now been restored to its former glory. During the restoration of the hotel, part of the city’s 16th-century defensive wall was uncovered; this slice of Vilnius’ history has now been covered with glass and is on display just outside the hotel’s restaurant.

Last Chance To Book

With just under a week to go until this year’s Hotel Investment Conference Europe (Hot.E), now is the time to book your place if you haven’t already done so. The conference is to be held at the Park Plaza Riverbank in London over the 21 and 22 September. HVS London will be at Hot.E – Charles Human, managing director of the London office and HWE Hodges Ward Elliott, will be leading one of three sessions called Connect with the Investors; HVS London’s chairman, Russell Kett, is moderating a session titled What’s Next on the Horizon – the View from the Boardroom; and Sophie Perret, an associate director with the London office, will be chairing a discussion on the Western/Northern Europe Track. For more information visit www.europehotelconference.com.

Mövenpick Puts Down Its Anchor In Ankara

Swiss group Mövenpick Hotels & Resorts has officially opened its third hotel in Turkey and its first in the country’s capital, Ankara. The Mövenpick Hotel Ankara is just 500 metres from the Congresium, the city’s largest convention and exhibition centre, and next door to a five-storey shopping centre. The 176-room hotel, which is owned by Varan Otelcilik AS, is designed to reflect Turkey’s Nazar Boncugu, the eye-shaped amulet traditionally worn to ward off evil.

Saudi Arabia’s Second Garden Inn

Hilton Worldwide has signed a management agreement with Adex Contracting Maintenance & Operations for its second Hilton Garden Inn hotel in Saudi Arabia. The Hilton Garden Inn Tabuk is expected to open in the city of Tabuk, in the north west of the country, in winter 2013, joining its sister property, the Hilton Garden Inn Riyadh Olaya. This signing means that Hilton now has 15 hotels overall in its pipeline for Saudi Arabia, all due to open over the next three years, bringing its portfolio in the country up to 21 properties.

IHG Sets Sail For Dubai Marina

InterContinental Hotels Group has signed an agreement with Dubai-based property company Select Group that will see it open its third InterContinental Hotel in the UAE. The InterContinental Dubai Marina is to be developed as part of Select Group’s three-tower Bay Central project at Dubai Marina. The hotel is due to open at the end of 2013 with 132 guest rooms and 196 residential suites.

A New Park Inn For Cape Town

Rezidor Hotel Group has announced a new hotel for Cape Town, in South Africa. The Park Inn by Radisson Cape Town Newlands is slated to open in the first quarter of 2014. The 122-room hotel is a joint venture between Cape Town-based Meridian Property Holdings, the Deaf Federation of South Africa and the Industrial Development Corporation. Once open, the hotel will become Rezidor’s second Park Inn by Radisson property in Cape Town. “Park Inn by Radisson hotels are highly efficient, fresh and innovative hotels that are global in outlook and local in operation; and we are committed to ambitious growth of this brand in South Africa,” said Andrew McLachlan, Rezidor’s Vice President Business Development for Africa and the Indian Ocean Islands. The group also has two Radisson Blu hotels in the city: one already in operation and one due to open soon.

Glitzy Ritz For Tunisa

Ritz-Carlton Hotel Company is planning to make its first appearance in Tunisia, North Africa. The group, a wholly owned subsidiary of Marriott International, will manage the Ritz-Carlton Tunis, Carthage, which is owned by Companie Tunisienne de Development Touristique. The 129-suite hotel is expected to open at the end of 2014 in the city of Tunis, on the Mediterranean Sea. The development will also include seven food and beverage outlets and a spa.

Ibis Brings Style To Egypt

Accor has opened its first Ibis Styles hotel in Egypt. The 139-room Ibis Styles Dahab Lagoon, previously the Coralia Club, is three kilometres from Dahab town centre, in the south of the country’s Sinai Peninsula, overlooking the Red Sea. Accor currently operates one other hotel in Dahab, the Mercure Dahab Bay View Hotel, and 19 in Egypt overall.

Second-Quarter Increase In Sales For Whitbread

For the second quarter of 2012, Whitbread recorded an increase in total sales of 14.8% on the same period in 2011. Room nights sold for the group’s Premier Inn chain grew by 10.2% to 6.4 million. Premier Inn like-for-like RevPAR rose by 2.3% in the second quarter of the year, and occupancy and average rate increase by 0.4 percentage points and 1.8%, respectively. Whitbread estimates that it benefitted from the London Olympic Games by an increase of just over one percentage point on total second-quarter RevPAR. The group has opened 1,565 rooms so far in 2012 and by the end of the year it plans to open around 4,500 rooms and eight joint site restaurants. “The economic challenges and variable trading month by month continue. We remain on track to deliver our ambitious growth programme, with our strong brands winning market share,” said Andy Harrison, Whitbread’s chief executive.

Gladen’s Tidings

The news from Spain by Esther Gladen, Business & Market Intelligence Analyst, HVS Madrid. New hotel project in Menorca: the five-star property will include 38 rooms and 15 serviced residences. French group Mare Terra plans to invest around €15 million in the development. Jackpot for Madrid: after long negotiations with the authorities of both Madrid and Barcelona, hotel and casino owner Sheldon Adelson has decided to build his Eurovegas project in the Spanish capital. Further details about the exact location have still not been revealed. OCA Hoteles adds urban hotel to its portfolio: the four-star MICE hotel Puerta del Camino is located in Santiago de Compostela and has 160 rooms. AC Hotels by Marriott takes over the Novotel San Cugat in the province of Barcelona: in agreement with the owner of the property, Catalana Occidente, Accor has decided not to continue managing the hotel after the termination of the lease contract. The Spanish chain plans to take over the 150-room property in due course. The Hotel Envía Almería Wellness & Golf now wears the Vinci Selección label: the five-star resort is located close to Almería and offers, amongst other facilities, 127 rooms, a wellness centre, extensive meeting space, two restaurants and an 18-hole golf course.

Absolute Share Price Performance Over the Past Week – 6-13 September 2012

Meliá Hotels International – Meliá fell on low volume.

NH Hoteles – NH decreased 1.6% on low volume.

Marriott International – Fitch Ratings has assigned a 'BBB' rating to Marriott.

For the latest in the hospitality industry, please visit: http://www.hvs.com. You are also welcome to contact the following personnel.

Russell Kett, Chairman – HVS London (@russellkett)rkett@hvs.com
Charles Human, CEO – HVS London/HVS Hodges Ward Elliottchuman@hvshwe.com
Tim Smith, Director – HVS Londontsmith@hvs.com
Chris Martin, Director – HVS Hodges Ward Elliottcmartin@hvshwe.com
Demetris Spanos, Managing Director – HVS Athensdspanos@hvs.com
Hala Matar Choufany, Managing Director – HVS Dubaihchoufany@hvs.com
Christopher Mumford, President, EMEA – HVS Executive Search (@ChrisMumford)cmumford@hvs.com
Philip Bacon, Managing Director – HVS Madrid and Managing Director, EMEA & Asia – HVS Shared Ownership Servicespbacon@hvs.com
Louise Fury, Senior Editor and EMEA Hospitality Newsletter Author – HVS Londonlfury@hvs.com